The Greater Vancouver retail market appears to have found a new level of stability, according to Colliers.

The company reported the finding in its latest Vancouver retail real estate market report. The stability follows a period of divergence between urban and suburban locations during the early pandemic-recovery phase, said Colliers.

The region’s urban retail vacancy rate remained unchanged at 3.4% since Colliers released its spring/summer report on the local retail sector. Meanwhile, suburban retail vacancy declined marginally to 0.7%.

Demand for retail space remains strong, particularly among quick-service restaurants, necessity-based shopping such as grocery stores and retail pharmacies, healthcare and medical services, convenience stores, and discount or low-price retailers, the report states.

On the other hand, total Greater Vancouver retail investment only posted a slight increase in the third quarter of 2024, rising to $9.1 billion from $9.08 billion in the first quarter of the year.

Upward pressure continues to impact rental rates for prime locations, while other areas have stabilized over the past year, said Colliers. The company also noted that the duration of deal negotiations can vary widely, depending on the complexity of each transaction and the parties involved.

Colliers Associate Research Director Susan Thompson and Joan Mae Lee, one of the firm’s research analysts covering the region, authored the report. Meanwhile, Jasper Lau, also a Colliers local research analyst, and Choki Chan, the company’s research co-ordinator for Greater Vancouver, contributed to to the review.

Photo: Colliers